Last Updated on October 1, 2026
A builder’s account sends far more payments than it receives: subcontractors, merchants, plant hire. The cost of sending is what to compare.
We priced a standard year at 15 UK business accounts on 1 October 2026 for a small building firm with two directors, 40 payments out a month (20 of them to subcontractors) and £25,000 received. For our model small building firm, a standard year of banking cost £43.20 at Virgin Money M Account and £480 at NatWest Standard Tariff.
The accounts that suit builders
- Virgin Money M Account, £43.20 a year. No monthly fee, free electronic payments and a branch. For turnover under £1m.
- HSBC UK Small Business Banking, £72 a year. No monthly fee and free digital payments, with a branch and lending.
- Co-operative Bank Business Bank Account, £72 a year. No monthly fee and free electronic payments, with a branch bank behind it.
If both directors need access, Monzo’s Pro plan (£9 a month) adds team members; Team (£25 a month, costed here) adds bulk payments. Mettle lets only one owner into the account, so it is left out.
The model month
| Each month | Small builder (limited company) |
|---|---|
| Payments received | 10 (£25,000 in total) |
| Transfers sent | 40 (including 20 subcontractor payments) |
| Direct Debits | 8 |
| Debit card purchases | 40 |
| Cash paid in | £400, in 2 deposits of £200 |
What a standard year cost a small building firm paying subcontractors
| Account | Standard year | What drives the bill |
|---|---|---|
| Virgin Money M Account | £43.20 | Cash 90p per £100; turnover under £1m |
| HSBC UK Small Business Banking | £72 | Post Office cash 1.5% (tariff from 14 December 2026) |
| Co-operative Bank Business Bank Account | £72 | Cash £1.50 per £100 |
| Barclays Business Current Account | £130.80 | £8.50 a month after 12 free months; cash 60p per £100 |
| Starling with Bulk Payments | £156 | Bulk Payments add-on £7 a month (limited companies); cash 0.7%, minimum £3 |
| Santander Business Classic | £179.88 | £9.99 a month after 12 free months; counter cash £1.25 per £100 |
| Tide Free | £187.20 | 20p per transfer in or out after 5 a month |
| Lloyds Business Account | £196.80 | £10 a month after 12 free months; counter cash £1.60 per £100 |
| Tide Smart | £277.08 | £12.49 a month, 30 transfers included |
| Monzo Business Team | £324 | £25 a month Team plan (staff access, bulk payments) plus £1 per cash deposit |
| NatWest Standard Tariff | £480 | 35p per electronic item and card payment; cash 95p per £100 plus 95p a deposit |
Left out for this trade, and why:
| Account | Why it is not in the table |
|---|---|
| Mettle (NatWest) | Only one owner can access the account |
| Revolut Business Basic | Takes no cash |
| Countingup | Cash fee not published |
| ANNA Free | Cash fee not on its pricing page |
What matters for builders beyond the fee
Paying subcontractors
Per-transfer plans bite here. On Tide Smart, 30 transfers are included and each one after is 20p; on NatWest’s Standard Tariff every payment out is 35p. Our model’s 58 payments in, out and by Direct Debit a month cost £20.30 a month (£243.60 a year) on NatWest’s tariff, before card and cash charges.
Two people, one account
Check how the second director gets access and whether payments can need two approvals. Monzo puts multi-user access on paid plans; Metro Bank charges £5 per user a month for Business Online Plus.
Construction Industry Scheme
CIS deductions go through payroll and tax, and they change how much you pay subcontractors. Make sure your bookkeeping software handles CIS and has a feed from the account you choose.
Before you open
- Count payments out, including subcontractors, merchants and Direct Debits.
- Decide who needs to approve payments and check each bank supports it.
- Price your own month: count a month of payments in, payments out, Direct Debits and cash, then use the fees on our best business bank accounts UK page.
- Check protection: who holds the money and whether it shares an FSCS limit. See FSCS protection on business accounts.
More for builders: the builder hub and builder software and tools. Every trade we priced: business banking by trade.
A builder should compare the cost of sending money and of a second user. The monthly fee is the smaller number.
Questions
What is the best business bank account for builders?
In our model of a small building firm paying subcontractors, priced from published fees on 1 October 2026, the cheapest standard year was Virgin Money M Account at £43.20, then HSBC UK Small Business Banking at £72 and Co-operative Bank Business Bank Account at £72. The cheapest high street bank was Virgin Money M Account at £43.20. Your own mix of payments and cash decides the answer.
Does Monzo work for a building company with two directors?
Monzo Business accepts limited companies. Adding team members needs a paid plan; the Team plan is £25 a month and includes bulk payments of up to 200 at once.
